Bitcoin Miners Pursuing AI Goals See 20%-30% Losses as Nvidia’s Plunge Creates Turmoil in Crypto

The recent market selloff could offer a promising opportunity for investors seeking to enter high-volatility altcoins, like Solana (SOL), which saw a significant drop in price, as noted by one analyst.

Bitcoin (BTC) made a slight recovery after reaching a low of $98,000, climbing back to around $101,500, although it was still down by 3% over the past 24 hours. Meanwhile, the broader crypto market, tracked by the CoinDesk 20 Index, fell 5.6%, with notable losses in AI-associated tokens such as Render (RNDR) and Filecoin (FIL). Solana, a key platform for crypto AI tokens, was hit hardest, seeing a drop of over 10%.

The steep decline caused nearly $1 billion in leveraged positions to be liquidated across the crypto market, according to CoinGlass data. Additionally, the Nasdaq dropped 3%, with Nvidia leading the losses, falling 17% and losing $465 billion in market value. This further underscored Bitcoin’s growing correlation with tech stocks, as noted by Geoffrey Kendrick, head of digital asset research at Standard Chartered.

Crypto-adjacent stocks also saw significant declines, with Coinbase (COIN) dropping 6.7%, and Galaxy (GXY) falling 15.8%. MicroStrategy, the largest corporate holder of Bitcoin, fared better, with a minor 1.5% drop.

Bitcoin mining stocks took the biggest hits, with major players like Riot Platforms (RIOT) and MARA Holdings (MARA) falling by 8.7% and 16%, respectively.

Companies that pivoted to artificial intelligence (AI) and high-performance computing infrastructure for AI training saw even worse declines. Core Scientific (CORZ), TeraWulf (WULF), Bitdeer (BTDR), Cipher Mining (CIPH), and Applied Digital Corporation (APLD) all suffered losses of 25% to 30%.

Aurelie Barthere, Principal Research Analyst at Nansen, said, “The crypto and AI stocks reached a point where a correction was due, especially as profit-taking became inevitable following a strong rally in certain sectors.”

Now, all eyes are on this week’s Federal Reserve meeting and earnings reports from big tech companies. Despite solid corporate earnings, reports from Nvidia and other tech giants will need to exceed expectations to maintain positive momentum.

The recent market downturn also creates an opportunity for altcoin investors, particularly those who missed out on the post-Trump crypto rally. Barthere noted that high-beta altcoins like Solana (SOL), which have been hit harder than Bitcoin, could present an attractive entry point for investors.